Markets & Finance

Merrill Lynch Upgrades Oracle to 'Buy'

Analyst Jason Maynard says he believes downside in the stock is limited and that the company has good exposure and leverage to a gradual economic recovery. Notes while there still a few weeks left in its fiscal first quarter, he believes business is tracking well and Oracle should land within its 4% to 7% revenue growth guidance.

Maynard raised his $2.07 billion first-quarter revenue estimate to $2.12 billion, and says he is comfortable with his 8 cents EPS estimate. He says as telcom, financial services, and government spending start to break out of the doldrums, Oracle stands to benefit as it generates about 40% of revenue from those sectors. He set a $15 price target on the stock.